The crude oil market is seen to be showing good progress with the increase in oil prices to the highest level since last March.
This is due to optimistic projections on global crude oil demand after market confidence following ongoing positive reports on the Coronavirus vaccine which is seen to have an impact on economic recovery.
At the same time, the Canadian dollar received a positive temp to strengthen in the market as crude oil was Canada's main export.
If you look at the price movement on the USD / CAD currency pair chart, the Canadian dollar managed to put pressure on the US dollar by pushing the price to a lower level in yesterday's trading.
Previously, the price has moved horizontally below the level of 1.31000 but in trading on Tuesday yesterday, the price has managed to fall to the latest low 2 weeks reaching the focus level of 1.30000.
In addition, the depreciation of the US dollar also pushed prices to trade lower this week.
The Asian session this morning saw the price move horizontally below the level of 1.30000, but began to show an increase at the beginning of the European session and will test the barrier level of Moving Average 50 (MA50) on the 1 hour price movement for further price direction signal.
If the price continues to decline again, the lower level that the price will go towards is seen around the support level of 1.29300 before reaching the concentration level of 1.29000.
If the price manages to make a move beyond the dynamic barrier MA50, the higher rise will return to test the resistance of 1.31000.
